What is the significance of the audit opinion included with the Bee Organized financial statements?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
To the Partners Bee Organized Enterprises, LLC 4227 W 104th Terr Overland Park, KS 66207
Opinion
We have audited the accompanying financial statements of Bee Organized Enterprises, LLC (a for profit organization), which comprise the statements of financial position as of December 31, 2024, 2023, and 2022 and the related statements of activities and cash flows for the years then ended, and the related notes to financial statements.
In our opinion, the financial statements referred to above present fairly, in all material aspects, the financial position of Bee Organized Enterprises, LLC as of December 31, 2024, 2023 and 2022 and the changes in its net assets and its cash flow for the years then ended in accordance with accounting principles generally accepted in the Unites States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Bee Organized Enterprises, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Bee Organized Enterprises, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the audit opinion from Karlin & Long, LLC, a Certified Public Accounting firm, states that the financial statements of Bee Organized Enterprises, LLC, which include statements of financial position as of December 31, 2024, 2023, and 2022, and related statements of activities and cash flows for those years, present fairly the company's financial position, net asset changes, and cash flow in accordance with generally accepted accounting principles (GAAP) in the United States of America. This opinion provides assurance that the financial statements are presented accurately and reliably.
The audit was conducted following auditing standards generally accepted in the United States of America. These standards require the auditors to be independent and to meet ethical requirements. The auditors believe that the evidence they obtained was sufficient and appropriate to provide a basis for their opinion. The audit includes assessing the risks of material misstatement, examining evidence on a test basis, understanding internal control relevant to the audit, evaluating accounting policies, and assessing the overall presentation of the financial statements. The audit does not express an opinion on the effectiveness of Bee Organized's internal control.
Management is responsible for the preparation and fair presentation of the financial statements, including the design, implementation, and maintenance of internal control relevant to the preparation of financial statements that are free from material misstatement, whether due to error or fraud. Management is also required to evaluate whether there are conditions or events that raise substantial doubt about Bee Organized's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
For a prospective Bee Organized franchisee, this unqualified or "clean" opinion is a positive indicator. It suggests that an independent accounting firm has reviewed Bee Organized's financial records and found them to be fairly presented. This can increase confidence in the financial stability and reporting practices of the franchisor. However, it is important to note that an audit provides reasonable assurance, not absolute assurance, and does not guarantee that no misstatements exist. A potential franchisee should carefully review the financial statements and notes, and possibly consult with a financial advisor, to fully understand the financial health of Bee Organized.